Jed Spends 32 Hours a Week, 50 Weeks a Year

question 57

Multiple Choice

Jed spends 32 hours a week, 50 weeks a year, operating a DVD rental store that he owns.He also owns a music store in another city that is operated by a full-time employee.He elects not to group them together as a single activity under the "appropriate economic unit" standard.Jed spends 40 hours per year working at the music store.

• A)Neither store is a passive activity.
• B)Both stores are passive activities.
• C)Only the DVD rental store is a passive activity.
• D)Only the music store is a passive activity.
• E)None of the above.

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Definitions:

Diene

Organic compounds that contain two double bonds, often involved in polymer production and synthetic rubber manufacture.

Solvolysis

The breakdown of a chemical compound by reaction with a solvent.

Methanol

A simple alcohol with the formula CH3OH, used as a solvent and as an antifreeze in fuel.

Products

The outcomes or substances resulting from a chemical reaction, which can be different in physical and chemical properties from the reactants.